Gaming Devices Regulations, 2011

L.N. 75 of 2011

LOTTERIES AND OTHER GAMES ACT

(CAP. 438)

Gaming Devices Regulations, 2011

IN EXERCISE of the powers conferred by article 78 of the

Lotteries and other Games Act, the Minister of Finance, the Economy

and Investment, after consultation with the Lotteries and Gaming

Authority, has made the following regulations:-

PART I

Preliminary

(1) The title of these regulations is the Gaming Devices

Regulations, 2011.

(2) These regulations shall come into force on the 16th day of

May, 2011.

(3) These regulations have been notified in terms of the

procedure for the provision of information in the field of technical

standards and regulations and rules pertaining to information society

services on the 11th day of March, 2010, which was followed by a

standstill period as laid down in Directive 98/34/EC of the European

Parliament and of the Council.

PART II

Definitions

Regulation 3

Licences

CLASSES OF LICENCES

1. A Class 1 Licence shall cover the manufacture, assembly, repairing or

servicing of relevant gaming devices.

2. A Class 2 Licence shall cover the placing on the market, distribution,

supply, sale, lease or transfer of relevant gaming devices.

3. A Class 3 Licence shall cover the making available for use, hosting or

operation of relevant gaming devices, but not the operation of a central

system.

4. A Class 4 Licence shall cover the operation of a central system.

(1)

In these regulations unless the context otherwise

requires

"the Act" means the Lotteries and Other Games Act;

"administrator" means a person who manages, controls or

administers an applicant or a licensee, including but not limited to a

director, a manager or a trustee, and any person who carries out such

functions even if under another title;

"advertising" means any form of announcement, notice or

broadcast, the apparent purpose of which is to convey information to

the public in and by newspaper or other printed publication, poster,

circular notice, radio, television or any other form or medium of

public communication;

"applicant" means a person that files an application for a

licence;

"approved employee" means a person in respect of whom a

certificate of approval has been issued by the Authority in terms of

Part IX;

"approved premises" means premises approved by the Authority

and in respect of which a certificate of approval has been issued in

terms of Part VIII;

"associated equipment" means any hardware, other than the

relevant gaming device or the central system, that is connected to the

relevant gaming device or to the central system for the purposes of

performing communication, validation or other functions, but

excludes the communication equipment and facilities forming part of

publicly available communications networks and services;

"associated persons" means qualifying holders, officers,

administrators, partners, key officials or other associates of a licensee

or of an applicant for a licence, as the case may be;

"central monitoring system" means an electronic system, a

computer system or a communication system that is designed or

adapted for use: to receive data from or send data to a relevant

gaming device or central system where such data relates to the

security, accounting or operation of the relevant gaming device, the

central system or any games or features played on, or associated with,

the relevant gaming device; and to perform such other functions as

may be determined by the Authority from time to time;

"central system" means an electronic system or a computer

system to which relevant gaming devices may be connected directly

or indirectly, and which is designed or adapted for use to

(a)

register all or part of the gaming taking place

through such relevant gaming device; and, or

(b) supervise all or part of the operations carried out in

or through such relevant gaming device; and, or

(c)

to store and provide reports and information on the

aforesaid matters;

"Class 1 Licence" means a licence granted by the Authority in

terms of regulation 5(1), and the term "Class 1 Licensee" shall be

construed accordingly;

"Class 2 Licence" means a licence granted by the Authority in

terms of regulation 5(2), and the term "Class 2 Licensee" shall be

construed accordingly;

"Class 3 Licence" means a licence granted by the Authority in

terms of regulation 11, and the term "Class 3 Licensee" shall be

construed accordingly;

"Class 4 Licence" means a licence granted by the Authority in

terms of regulation 18, and the term "Class 4 Licensee" shall be

construed accordingly;

"domestic computer" means an electronic or computer system

that

(a)

is capable of being used for a purpose that is not

related to the playing of a game;

(b)

is located in a private residence; and

(c)

if used, is used on a domestic occasion;

"employee" includes any person engaged to provide services in

relation to the playing of a game and the term "employ" shall be

construed accordingly;

"exempt relevant gaming device" means a relevant gaming

device listed in the Fourth Schedule and such other relevant gaming

devices as may be specified by directives issued by the Authority

from time to time;

"financial credit" means allowing a person any length of time in

which to make payment or otherwise honour a financial obligation,

whether express or implied, and includes lending of cash or cash

equivalent but does not include the use of pre-paid cards used in lieu

of cash;

"game provided through a relevant gaming device" means a

game played by means of a relevant gaming device;

"group company" and "group" shall have the meaning assigned

to them by the Companies Act;

"key official" means an individual appointed in terms of

regulation 60;

"licence" means a Class 1 Licence, Class 2 Licence, Class 3

Licence or a Class 4 Licence;

"licensee" means a Class 1 Licensee, a Class 2 Licensee, a Class

3 Licensee or a Class 4 Licensee, as the case may be;

"mystery game" means a game provided through a relevant

gaming device that offers a player the possibility of winning a

mystery jackpot;

"mystery jackpot" means a variable award which is additional to

the maximum prize which can be won on a game provided through a

relevant gaming device, and which is randomly awarded to a player;

"National Lottery Relevant Gaming Device" means a relevant

gaming device used or to be used solely and exclusively for the

purposes of, and in connection with, the operation of the National

Lottery and, or any other activity authorised in terms of the National

Lottery licence issued at the relevant time;

"progressive game" means a game provided through a relevant

gaming device that offers a player the possibility of winning a

progressive jackpot;

"progressive jackpot" means a variable award which is

additional to the maximum prize which can be won on a game

provided through a relevant gaming device, and which may be won

by a player as a result of the happening of an event on one or more

relevant gaming devices linked to each other for the purpose of

offering such kind of variable award;

"personal computer" means an electronic or computer system

that

(a)

is capable of being used for a purpose that is not

related to the playing of a game; and

(b) is not adapted or presented in such a way as to

facilitate, or to draw attention to the possibility of, its use for the

playing of a game;

"player" means a person who plays a game provided through a

relevant gaming device;

"premises" means any venue or other physical infrastructure;

"premises accessible to the public" means premises accessible

to the public whether for free or for a charge, and includes private

clubs where memberships are given or sold for the privilege of

belonging to the private club and accessing premises for social or

business purposes;

"qualifying holding" means

(a)

a direct or indirect holding in an entity of at least

twenty per cent of the capital in issue, provided that where the

rights held as to the percentage of votes, to profits available for

distribution and to rights to assets available for distribution on a

winding up in respect of such holding are not identical, the

highest percentage figure shall be deemed to be the percentage

of equity holding held; or

(b) an equity holding which makes it possible for the

holder thereof to appoint the majority of the administrators of

the entity;

and the term "qualifying holder" shall be construed accordingly;

"restricted access controls" means rules, measures and

procedures for restricting physical access to approved premises as set

out in regulation 34;

"single game"

(a)

means a sequence of actions and states in a relevant

gaming device that are

(i) activated by a player through a wagering of

credits; and

(ii) terminated when

-

all the credits wagered by the player

relating to those actions or states have been lost; or

-

all winnings relating to those actions

or states have been paid out to the player or

transferred to the player’s credit meter and are no

longer available to be wagered on that sequence;

and

(b) includes any feature of the relevant gaming device

that is triggered by the wagering of the credits, unless all

winning credits are transferred to the player’s credit meter

before the feature is activated; and

"subsidiary" has the same meaning as is assigned to the term

"subsidiary undertaking" by the Companies Act.

(2) For the purposes of these regulations, the term "operate"

shall not include the use by a player of a relevant gaming device for

the purpose of playing a game.

(3) Unless the context otherwise requires, terms used in these

regulations and which are not defined herein shall have the meaning

assigned to them in the Act.

(4) In these regulations, if there is any conflict between the

English and Maltese texts, the English text shall prevail.

PART III

Licenses - General

Regulation 5

Application Documents and Information

1. Class 1 Licence Application

Personal Declaration Form in such form as may be required by

the Authority, for each associated person;

Police Conduct Certificate updated to within fifteen (15) days of

the date of filing of the application, for each associated person;

Copy (certified by a notary public or advocate) of birth

certificate, and passport or valid identification card, for each associated

Bank Reference for each associated person, in such form as may

be required by the Authority;

Two passport-sized photos for each associated person;

Any agreements, pre-agreements or drafts thereof entered into or

under negotiation (as the case may be) between the applicant and: a Class 1

Licensee; any other person applying for a license to manufacture, assemble,

repair or service relevant gaming devices; a Class 2 Licensee; any person

applying for a license to place on the market, distribute, supply, sell, lease or

transfer relevant gaming devices; a Class 3 Licensee; or any person applying

for a license to make available for use, host or operate relevant gaming

devices;

g.

Detailed information on the manner in which the applicant

intends to ensure the proper conduct of its business, including the procedures

to be adopted in order to ensure the timely repair and maintenance of the

relevant gaming devices as and when necessary;

h.

Where applicable, the relevant certificates and qualifications of

the applicant relating to the activities to be conducted under the Class 1

Licence; and

i.

Any other information or document required by the Authority.

2. Class 2 Licence Application

a.

Personal Declaration Form in such form as may be required by

the Authority, for each associated person;

b.

Police Conduct Certificate updated to within thirty (30) days of

the date of filing of the application, for each associated person;

c.

Copy (certified by a notary public or advocate) of birth

certificate, and passport or valid identification card, for each associated

person;

d.

Bank Reference for each associated person, in such form as may

be required by the Authority;

e.

Two passport-sized photos for each associated person;

f.

A list of licensed manufacturers of relevant gaming devices or

manufacturers of relevant gaming devices who have applied for a Class 1

Licence, as the case may be, whose relevant gaming devices the applicant

intends to place on the market, distribute, supply, sell, grant on lease or

transfer;

g.

Any agreements, pre-agreements or drafts thereof entered into or

under negotiation (as the case may be) between the applicant and: a Class 1

Licensee; any person applying for a license to manufacture, assemble, repair

or service relevant gaming devices; a Class 2 Licensee; any other person

applying for a license to place on the market, distribute, supply, sell, lease or

transfer relevant gaming devices; a Class 3 Licensee; or any person applying

for a license to make available for use, host or operate relevant gaming

devices;

h.

Detailed information on the manner in which the applicant

intends to ensure the proper conduct of its business, including the procedures

to be adopted in order to ensure the timely repair and maintenance of the

relevant gaming devices as and when necessary; and

i.

Any other information or document required by the Authority.

3. Class 3 Licence Application

a.

Personal Declaration Form in such form as may be required by

the Authority, for each associated person;

b.

Police Conduct Certificate updated to within fifteen (15) days of

the date of filing of the application, for each associated person;

c.

Copy (certified by a notary public or advocate) of birth

certificate, and passport or valid identification card, for each associated

person;

d.

Bank Reference for each associated person, in such form as may

be required by the Authority;

e.

Two passport-sized photos for each associated person;

f.

Detailed information on the manner in which the applicant

intends to ensure the proper conduct of its business, including the procedures

to be adopted in order to ensure the timely repair and maintenance of the

relevant gaming devices as and when necessary;

g.

The number of relevant gaming devices that the applicant intends

to make available for use, host or operate in terms of the licence, which in no

case shall exceed ten (10) relevant gaming devices per approved premises;

h.

Where applicable, a description of the specifications and location

of the central system to which all relevant gaming devices made available for

use, hosted or operated under the licence will be connected;

i.

The dates and, or days of the week, and the times during such

dates or days, on or during which games provided through a relevant gaming

device may be played, and vouchers or tokens issued by relevant gaming

devices may be exchanged or redeemed, in approved premises;

j.

The number, types and descriptions of games provided through a

relevant gaming device which the applicant intends to make available for

use, host or operate through the relevant gaming devices in terms of the

licence, including the proposed range of payout percentages, the win

determination process and the elements of the games provided through a

relevant gaming device;

k.

The rules and regulations regarding the procedures for making

use of relevant gaming devices and playing the games provided through

relevant gaming devices;

l.

The procedures for printing, validation and authentication of

vouchers or tokens issued by relevant gaming devices;

m.

The procedures for the exchange or redemption of vouchers or

tokens issued by relevant gaming devices, for prizes;

n.

The proposed prizes to be awarded to players by way of

redemption or exchange of vouchers or tokens issued by approved relevant

gaming devices;

o.

Where applicable, the proposed procedures for registering and

recording on the central system all gaming and other processes taking place

on or carried out through the relevant gaming devices;

p.

Any agreements, pre-agreements or drafts thereof entered into or

under negotiation (as the case may be) between the applicant and: a Class 1

Licensee; any person applying for a license to manufacture, assemble, repair

or service relevant gaming devices; a Class 2 Licensee; any person applying

for a license to place on the market, distribute, supply, sell, lease or transfer

relevant gaming devices; a Class 3 Licensee; any other person applying for a

license to make available for use, host or operate relevant gaming devices; or

any other person directly or indirectly related to the making available for use,

hosting or operation of the relevant gaming devices or to the approved

premises;

q.

The proposed system of reporting of payouts effected by each

relevant gaming device, on a monthly basis and, or upon inspection by an

inspector;

r.

The proposed policies, procedures and measures to ensure the

compliance of the relevant gaming devices and games provided through such

relevant gaming devices with the Act, these regulations and the licence;

s.

A declaration by a person in possession of a warrant to practice as

an Architect & Civil Engineer that the proposed premises are compliant with

these regulations and any relevant policy issued by the Authority; and

t.

Any other information or document required by the Authority.

4. Class 4 Licence Application

a.

Personal Declaration Form in such form as may be required by

the Authority, for each associated person;

Police Conduct Certificate updated to within fifteen (15) days of

the date of filing of the application, for each associated person;

Copy (certified by a notary public or advocate) of birth

certificate, and passport or valid identification card, for each associated

Bank Reference for each associated person, in such form as may

be required by the Authority;

Two passport-sized photos for each associated person;

Detailed information on the manner in which the applicant

intends to ensure the proper conduct of its business, including the procedures

adopted to ensure the timely repair and maintenance of the central system as

and when necessary;

A technical description of the central system specifications as

may be required by the Authority;

Details of the proposed location of the central system in Malta

and the standards maintained therein;

A detailed operational manual outlining the application

architecture, the system architecture, the software developer, security and

control procedures, back-up and disaster recovery procedures;

A description of the relevant gaming devices that are proposed to

be connected to the central system;

A list of the Class 3 Licensees in whose name the relevant

gaming devices proposed to be connected to the central system are approved

and registered;

Agreements with any person carrying out an activity referred to

in regulation 3(1) with respect to that activity;

A detailed description of the proposed accounting procedures and

procedures for registering and recording on the central system all gaming and

other processes taking place on or carried out through the relevant gaming

The proposed policies, procedures and measures to ensure the

compliance of the central system with the Act, these regulations and the

licence; and

Any other information or document required by the Authority.

(1) Notwithstanding the provisions of any other law, Requirement of

a licence.

regulation, licence or authorisation, no person shall

(a)

manufacture, assemble, repair or service;

(b) place on the market, distribute, supply, sell, lease or

transfer; or

(c)

make available for use, host or operate;

any relevant gaming device, unless such person is in possession of a

valid licence issued by the Authority as set out in the First Schedule.

(2) The provisions of this regulation shall not apply to exempt

relevant gaming devices.

Description of

One-time non-

Licence Fee

Placement Tax

One Time

Licence or

refundable

Approval Fee

Authorisation

application fee

Regulation 6(1)

Regulation 6(4)

Class 1 Licence € 2,000

€ 2,000 per annum

nil

nil

Regulation 6(1)

Regulation 6(4)

Class 2 Licence € 2,000

€ 2,000 per annum

nil

nil

Regulation

Regulation 12(4)

Regulation 12(4)

12(1)

Class 3 Licence € 500

€ 125 per relevant Higher of

nil

gaming device per - €400 per relevant

month

gaming device per

month; or

- 20% of the

monthly

gross

revenue generated

by every relevant

gaming device

Regulation

19(1)

Class 4 Licence € 2,000

nil

nil

nil

Regulation

25(2)(k)

Approval

of nil

nil

nil

€

per

relevant

relevant gaming

gaming devices

device

Regulation

Regulation 25(10)

25(9)

Approval

of N/A

€100 per annum nil

€500 per game, if

games

per

relevant

not licensed and,

gaming

device

or approved in

through which the

the EU or the

game is provided

EEA

Regulation 39

Regulation 31(3)

Approval

of N/A

€500 per premises N/A

€2,500

per

premises

per annum

premises

Regulation 43(3)

Approval

of N/A

N/A

N/A

€25

per

employees

employee

Except where these regulations expressly provide Multiple

otherwise, a person may qualify for more than one type or class of authorisation,

licence or

authorisation, licence, approval or certification under these approval.

regulations.

PART IV

Licenses - Class 1 Licence and Class 2 Licence

Exempt Relevant Gaming Devices

1. A National Lottery Relevant Gaming Device, specifically exempt by

the Authority.

2. Coin-operate claw crane vending machine.

3. Totalisator authorised under the Racecourse Betting Ordinance (Cap. 78

of the Laws of Malta) and and any other relevant gaming device used in

conjunction with such Totalisator, specifically exempt by the Authority.

4. Relevant gaming devices approved under the Commercial Bingo

(Tombola) Regulations (S.L. 438.05), specifically exempt by the Authority.

5. Remote gaming equipment approved or authorised by the Authority in

terms of the Remote Gaming Regulations (S.L. 438.04), specifically exempt by the

Authority.

6. Relevant gaming devices authorised or licensed by the Authority under

the Gaming Act (Cap. 400), specifically exempt by the Authority.

(1) A Class 1 Licence may be granted by the Authority Class 1 Licence

to a person for the purpose of authorising that person to manufacture, and

Licence.

assemble, repair or service a relevant gaming device.

(2) A Class 2 Licence may be granted by the Authority to a

person for the purpose of authorising that person to place on the

market, distribute, supply, sell, lease or transfer a relevant gaming

device.

(3) Applications for a Class 1 Licence or a Class 2 Licence

(hereinafter in this Part referred to as a "Licence") shall be made on

such forms designated by the Authority from time to time.

(4) The application form mentioned in sub-regulation (3) shall

be accompanied by such information and, or documentation set out in

the Second Schedule together with such other information or

documentation requested by the Authority.

(1) The granting of a Licence under these regulations

shall in all cases be subject to the payment of a one-time non-

refundable application fee as set forth in the Third Schedule. The

application fee shall be payable only once and shall not be payable for

the purpose of renewal of the License in terms of regulation 7.

(2) The Authority may further require applicants for a Licence

to pay, in addition to the application fee referred to in sub-regulation

(1), the actual costs incurred by the Authority for the purpose of

(a)

conducting investigations into such applicant’s

background, suitability and qualifications for being granted and

for retaining a Licence; and

(b) verifying the information submitted by such

applicant in terms of these regulations.

(3) The application fee referred to in sub-regulation (1) shall

be paid simultaneously with the filing of the application for a

Licence.

(4) Following the granting of a Licence, a Class 1 Licensee or

a Class 2 Licensee (hereinafter in this Part referred to as a

"Licensee") shall pay an annual licence fee as set out in the Third

Schedule together with, where required by the Authority, the actual

costs incurred by the Authority for the purpose of conducting

investigations into such Licensee’s background, suitability and

qualifications for retaining a Licence and for the purpose of verifying

the information submitted by a Licensee in terms of these regulations.

Such annual licence fee and, where applicable, the costs incurred by

the Authority as aforesaid, shall be payable by the Licensee by not

later than two weeks prior to the lapse of every calendar year

following the date of issue of the Licence.

(5) No application for a Licence shall be processed, and no

Licence shall be issued or renewed, until the Authority has been paid

all amounts due to it in connection with

(a)

the processing of the application;

(b)

the grant of the Licence;

(c)

the Licence;

(d)

the monitoring and enforcement of the Licence.

(6) If a Licensee fails to pay the annual licence fee as set out in

the Third Schedule within the time period set out in sub-regulation

(4), the Licence shall lapse automatically.

(1) A Licence granted by the Authority shall be for a Term and

Renewal of a

term not exceeding one year.

Class 1 Licence

and Class 2

Licence.

(2) Following receipt by the Authority of an application for

the renewal of a Licence, the Authority shall renew the Licence for

further periods not exceeding one year each if the Authority is

satisfied that the Licensee applying for renewal

(a)

has, at all times during the preceding original or

renewed term of the Licence complied with

(i) the provisions of the Act and of these

regulations;

(ii) the terms and conditions of the Licence; and

(iii) any directive issued by the Authority in terms

of the Act or of these regulations, which is applicable to

such Licence; and

(b)

satisfies the conditions mentioned in regulation 8.

(3) Applications for renewal of a Licence shall be made in the

form designated by the Authority and shall be submitted to the

Authority at least sixty days prior to the expiration of the term of the

current Licence. The application fee referred to in regulation 6(1)

shall not be required to be paid for the renewal of a Licence.

(1) The Authority shall not grant or renew a Licence Grant and

applied for under these regulations unless it is satisfied that the Renewal

Class 1 Licence

and a Class 2

applicant and any associated persons are fit and proper persons.

Licence.

(2) In determining whether the applicant for the granting or

renewal of a Licence and any associated persons are fit and proper

persons, the Authority may have regard to such matters as may be

included in directives issued by the Authority from time to time.

(3) In determining whether to grant or renew a Licence applied

for under these regulations, the Authority may, in addition, have

regard to any matter or policy which the Authority reasonably

considers relevant in the particular circumstances.

(4) A Licence granted by the Authority shall be in such form

and shall contain such particulars as the Authority may determine.

In granting a Licence, the Authority may subject such

Licence to such terms, conditions or requirements as it may deem

appropriate, and at any time following the grant of the Licence the

Authority may from time to time vary or revoke any term, condition

or requirement so imposed, or may impose new terms, conditions or

requirements.

A Licensee shall comply with

(a)

any applicable code or codes of conduct that may be

issued by the Authority in respect of relevant gaming devices

and, or games provided through relevant gaming devices; and

(b)

any conditions specified in the Licence.

PART V

Licenses - Class 3 Licence

(1) A Class 3 Licence may be granted by the Authority

to a person for the purpose of authorising that person to make

available for use, host or operate a relevant gaming device, provided

that the provisions of this Part shall not apply to the operation of a

central system.

(2) Applications for a Class 3 Licence shall be made on such

form designated by the Authority from time to time.

(3) The application form referred to in sub-regulation (2) shall

be accompanied by such information and documents as set out in the

Second Schedule together with such other information or

documentation requested by the Authority.

(1) The granting of a Class 3 Licence under these

regulations shall in all cases be subject to the payment of a one-time

non-refundable application fee as set forth in the Third Schedule. The

application fee shall be payable only once and shall not be payable for

the purpose of renewal of the Class 3 License in terms of regulation

(2) The Authority may further require applicants for a Class 3

Licence to pay, in addition to the application fee referred to in sub-

regulation (1), the actual costs incurred by the Authority for the

purpose of

(a)

conducting investigations into such applicant’s

background, suitability and qualifications for being granted and

for retaining a Class 3 Licence; and

(b) verifying the information submitted by such

applicant in terms of these regulations.

(3) The application fee referred to in sub-regulation (1) shall

be paid simultaneously with the filing of the application for a Class 3

Licence.

(4) Following the grant of a Class 3 Licence, a Class 3

Licensee shall, in respect of each approved premises in relation to

which such Class 3 Licensee holds a certificate of approval, by not

later than the lapse of twenty days from the end of each month, pay

(a)

a monthly licence fee as set out in the Third

Schedule in respect of every relevant gaming device in each

approved premises; and

(b) a monthly relevant gaming device placement tax

consisting of the higher of

(i) four hundred euro (€400.00) per relevant

gaming device; or

(ii) twenty percent of the gross monthly proceeds

generated from the relevant gaming device; and

(c)

where required by the Authority, the actual costs

incurred by the Authority for the purpose of conducting

investigations into such Licensee’s background, suitability and

qualifications for retaining a Licence and for the purpose of

verifying the information submitted by a Licensee in terms of

these regulations.

(5) No application for a Class 3 Licence shall be processed,

and no Class 3 Licence shall be issued or renewed, until the Authority

has been paid all amounts due to it in connection with

(a)

the processing of the application;

(b)

the grant of the Class 3 Licence;

(c)

the Class 3 Licence; and

(d)

the monitoring and enforcement of the Class 3

Licence.

(6) If a Class 3 Licensee fails to pay the amounts due as set out

in the Third Schedule within the time period set out in sub-regulation

(4) , the Class 3 Licence shall lapse automatically.

(7) A Class 3 Licensee shall, together with the payment of the

placement tax referred to in sub-regulation (4)(b), deliver to the

Authority a return setting out the gross monthly revenue generated

from every relevant gaming device. The return shall be in such form

as may be established by the Authority from time to time.

(8) Should the Class 3 Licensee fail to submit the return

referred to in sub-regulation (7) or should the return contain false or

inaccurate information, the Authority shall, in addition to any other

remedy set out in the Act or these regulations, have the right to

suspend or revoke the Class 3 Licence of the Class 3 Licensee or

impose such conditions on the Class 3 License as it may deem

necessary.

13. (1) A Class 3 Licence granted by the Authority shall be

for a term not exceeding one year.

(2) Following receipt by the Authority of an application for

the renewal of a Class 3 Licence, the Authority shall renew the Class

3 Licence for further periods not exceeding one year each if the

Authority is satisfied that the Licensee applying for renewal

(a)

has, at all times, during the preceding original or

renewed term of the Class 3 Licence complied with

(i) the provisions of the Act and of these

regulations;

(ii) the terms and conditions of the Class 3

Licence; and

(iii) any directive issued by the Authority in terms

of the Act or of these regulations and which is applicable

to such Class 3 Licence; and

(b)

satisfies the condition mentioned in regulation 14.

(3) Applications for renewal of a Class 3 Licence shall be

made in the form designated by the Authority and shall be submitted

to the Authority at least sixty days prior to the expiration of the term

of the existing Class 3 Licence. The application fee referred to in

regulation 12(1) shall not be required to be paid for renewal of a Class

3 Licence.

(1) The Authority shall not grant or renew a Class 3 Grant and

Licence applied for under these regulations unless it is satisfied that Renewal

Class 3 Licence.

the applicant and any associated persons are fit and proper persons.

(2) In determining whether the applicant for the granting or

renewal of a Class 3 Licence and the associated persons are fit and

proper persons, the provisions of regulation 8(2) shall apply mutatis

mutandis.

(3) In determining whether to grant or renew a Class 3 Licence

applied for under these regulations, the Authority may, in addition,

have regard to any matter or policy which the Authority considers

relevant in the particular circumstances.

(4) A Class 3 Licence granted by the Authority shall be in

such form and shall contain such particulars as the Authority may

determine.

In granting a Class 3 Licence, the Authority may subject Conditions of

such Class 3 Licence to such other terms, conditions or requirements Class 3 Licence.

as it may deem appropriate, and at any time following the grant of the

Class 3 Licence, the Authority may from time to time vary or revoke

any term, condition or requirement so imposed, or may impose new

terms, conditions or requirements.

(1)

A Class 3 Licensee shall

Obligations of a

Class 3

Licensee.

(a)

not carry out any of the activities specified in the

Class 3 License in any premises unless such premises are

approved premises and the certificate of approval of such

premises has been issued in the name of the Class 3 Licensee;

(b) not allow, or provide facilities for, the redemption or

exchange of any voucher or token issued by relevant gaming

devices in any premises unless such premises are approved

premises and the certificate of approval of such premises is

issued in the name of the Class 3 Licensee and unless the

relevant gaming devices from which such vouchers or tokens

are issued are made available for use, hosted or operated in the

same approved premises in which the redemption or exchange

of such vouchers or tokens is effected;

(c)

not employ, or permit to work in relation to the

playing of games, any person unless such person is an approved

employee;

(d) not make available for use, host or operate any

relevant gaming device and, or associated equipment unless

such relevant gaming device and associated equipment is

approved and registered by the Authority in terms of Part VII

before the commencement of any such activity;

(e)

not modify, tamper with or re-programme, or allow

or suffer any other person to modify, tamper with or re-

programme, a relevant gaming device which has been approved

and registered by the Authority in terms of Part VII, save with

the consent of the Authority;

(f)

not break any seals affixed by inspectors on a

relevant gaming device which has been approved and registered

by the Authority in terms of Part VII of these regulations, or

allow any person to break such seals, save with the consent of

the Authority and in the presence of an inspector or any other

Authority official;

(g) where applicable, ensure that the means of distance

communication through which a relevant gaming device and, or

central system can be connected to other relevant gaming

devices, central systems and, or the central monitoring system,

are located at the approved premises and are at all times

connected, and not modify, tamper with or re-programme, or

allow or suffer any other person to modify, tamper with or re-

programme, the operation of such means of distant

communication;

(h) ensure that the relevant gaming devices which have

been approved and registered by the Authority in terms of Part

VII are placed and remain placed in the approved premises and

that adequate restricted access controls are maintained;

(i)

not permit a player to participate in a game provided

through a relevant gaming device unless such person produces a

valid identification card or passport;

(j)

ensure at all times that the making available for use,

hosting or operation of a relevant gaming device in an approved

premises is carried out in a secure, safe and proper manner;

(k) ensure that during opening hours of the approved

premises, the area in which the playing of games through

relevant gaming devices is designed to take place is constantly

supervised by approved employees;

(l)

where required by the Authority, at the expense of

the Class 3 Licensee install, connect, make and keep operational

the means of communication approved by the Authority to

ensure an adequate and properly functioning direct

communication link between relevant gaming devices which

have been approved and registered by the Authority in terms of

Part VII;

(m) assume financial responsibility for proper and

timely payments of all prizes awarded to players by way of

redemption or exchange of vouchers or tokens issued by

relevant gaming devices;

(n) engage or employ only Class 1 Licensees for the

purpose of repairing or servicing relevant gaming devices and,

or associated equipment which have been approved and

registered by the Authority in terms of Part VII;

(o) display on each relevant gaming device which has

been approved and registered by the Authority in terms of Part

VII, all information and keep affixed all certificates, seals or

markers as required by the Authority and shall not remove or

allow any person to remove such information, certificates, seals

or markers unless prior approval of the Authority for such

action has been obtained;

(p) ensure that there shall be installed and prominently

displayed, within or about the approved premises

(i)

notices on the risks associated with gaming;

(ii) notices recommending responsible gaming;

(iii) information on associations or other

organisations which can assist persons who have gambling

problems;

(iv) information relating to the redemption or

exchange of vouchers or tokens issued by relevant gaming

devices; and

(v) any other material as may be required and, or

supplied by the Authority;

(q)

promptly notify the Authority in writing of any

breakages or other kind of tampering with any relevant gaming

device which have been approved and registered by the

Authority in terms of Part VII, or seals affixed to such relevant

gaming device;

(r)

maintain, at all times and for a period of not less

than ten years, audit trails and other statistical information as

may be required from time to time by the Authority, and provide

such information to the Authority upon the request of the

Authority within such time period specified for such purpose;

(s)

in a register to be kept for that purpose, keep a

record of the identity, winnings and transactions carried out by

any one player who, in approved premises of the Class 3

Licensee, on any one day wagers, receives or pays amounts

which in aggregate exceed two thousand euro (€2,000.00). Such

register shall, upon request, be made available to inspectors for

review;

(t)

open the approved premises for business only

between 11:00 a.m. and 11:00 p.m.;

(u) comply with all the relevant provisions of these

regulations and with the provisions of any applicable code or

codes of conduct that may be issued by the Authority in respect

of relevant gaming devices and, or games provided through

relevant gaming devices; and

(v)

comply with any conditions specified in the Class 3

Licence.

(2) A Class 3 Licensee who intends to offer a progressive

jackpot or a mystery jackpot (hereinafter in this regulation referred to

as the "jackpots") through relevant gaming devices in approved

premises shall apply to the Authority for its prior written approval

following a request in writing by the Class 3 Licensee.

(3) A Class 3 Licensee who has obtained the approval required

in terms of sub-regulation (2) shall

(a)

ensure that every mystery game and progressive

game offering a jackpot has the same probability of awarding

the jackpot;

(b) ensure that every relevant gaming device through

which the mystery game or progressive game is provided is

located in the same approved premises;

(c)

ensure that where a jackpot is offered, such jackpot

remains on offer until it is won by a player;

(d) ensure that the relevant gaming device through

which the progressive or mystery game is provided clearly

displays the value of the jackpot on offer;

(e)

maintain at all times a record of the variations in the

value of the jackpot on offer, and provide such record to the

Authority upon the request of the Authority within such time

period specified for such purpose; and

(f)

maintain a minimum cash reserve which is sufficient

to ensure that the Class 3 Licensee at all times has cash

available to pay all jackpots on offer from time to time.

(4) A jackpot may only be transferred from one progressive

game or mystery game to another progressive game or mystery game

if the following conditions are satisfied

(a)

the prior approval for such transfer has been granted

by the Authority following a request in writing by the Class 3

Licensee; and

(b) the transfer of the jackpot takes place amongst

progressive games or mystery games provided through relevant

gaming devices located in the same approved premises.

(1) A Class 3 Licensee shall take out, prior to the Requirement of

commencement of the activities specified in the Class 3 Licence, and a guarantee.

shall at all times thereafter maintain, a bank guarantee issued by a

bank or by a credit or financial institution acceptable to the Authority,

in favour of the Authority on its own behalf and on behalf of the

Government, in the amount mentioned in sub-regulation (2), for

securing

(a)

the payment and distribution of prizes by the Class 3

Licensee to winners of a game provided through a relevant

gaming device made available for use, hosted or operated under

the Class 3 Licence;

(b) the payment of fees, duties or any other sums

payable by the Class 3 Licensee to the Authority in terms of

these regulations; and

(c)

the payment by the Class 3 Licensee of any fines or

administrative penalties imposed by the Act or these

regulations.

(2) The bank guarantee mentioned in sub-regulation (1) shall

be for not less than the amount arrived at by multiplying five hundred

euro (€500.00) by the number of relevant gaming devices located in

approved premises in respect of which the Class 3 Licensee holds a

certificate of approval.

(3) The bank guarantee shall become payable to the Authority

on its first demand, and it shall not be incumbent upon the relative

bank, credit or financial institution which issued the bank guarantee

to verify whether such demand is justified.

(4) The bank guarantee shall remain valid until the expiry of

one year from the expiry, cancellation, suspension or non-renewal of

the Class 3 Licence or until such time as the Authority considers and

notifies the Class 3 Licensee in writing that such bank guarantee is no

longer required, whichever is the earlier.

(5) The bank guarantee shall be subject to such other terms

and conditions as may be specified in the Class 3 Licence or as may

be otherwise prescribed by the Authority.

PART VI

Licenses - Class 4 Licence

(1) It shall not be lawful for any person to operate a

central system and connect such central system to a relevant gaming

device or suffer such relevant gaming device to be so connected,

unless such central system is approved by the Authority and such

person is in possession of a Class 4 License issued by the Authority.

(2) Applications for a Class 4 Licence shall be made on such

forms designated by the Authority from time to time and shall be

accompanied by such information and documents as set out in the

Second Schedule together with such other information or

documentation requested by the Authority.

(1) The granting of a Class 4 Licence under these

regulations shall in all cases be subject to the payment of a one-time

non-refundable application fee as set forth in the Third Schedule.

(2) The Authority may further require applicants for a Class 4

Licence to pay, in addition to the application fee referred to in sub-

regulation (1), the actual costs incurred by the Authority for the

purpose of

(a)

conducting investigations into such applicant’s

background, suitability and qualifications for being granted and

for retaining a Class 4 Licence; and

(b) verifying the information submitted by such

applicant in terms of these regulations.

(3) The application fee referred to in sub-regulation (1) shall

be paid simultaneously with the filing of the application for a Class 4

Licence.

(4) No application for a Class 4 Licence shall be processed,

and no Class 4 Licence shall be issued or renewed, until the Authority

has been paid all amounts due to it in connection with

(a)

the processing of the application;

(b)

the grant of the Class 4 Licence;

(c)

the Class 4 Licence; and

(d)

the monitoring and enforcement of the Class 4

Licence.

(1) A Class 4 Licence granted by the Authority shall be Term and

Renewal of

for a term not exceeding one year.

Licence of Class

4 Licence.

(2) Following receipt by the Authority of an application for

the renewal of a Class 4 Licence, the Authority shall renew the Class

4 Licence for further periods not exceeding one year each if the

Authority is satisfied that the Class 4 Licensee applying for renewal

(a)

has at all times during the preceding original or

renewed term of the Class 4 Licence complied with

(i) the provisions of the Act and of these

regulations;

(ii) the terms and conditions of the Class 4

Licence; and

(iii) any directive issued by the Authority in terms

of the Act or of these regulations and which are applicable

to such Class 4 Licence; and

(b)

satisfies the conditions mentioned in regulation 21.

(3) Applications for renewal of a Class 4 Licence shall be

made in the form designated by the Authority and shall be submitted

to the Authority at least sixty days prior to the expiration of the term

of the existing Class 4 Licence. The application fee referred to in

regulation 19(1) shall not be required to be paid for renewal of a Class

4 Licence.

(1) The Authority shall not grant or renew a Class 4

Licence applied for under these regulations unless the applicant

(a)

and any associated persons, are fit and proper

persons;

(b) has adequate financial and technical means, the

expertise and experience necessary to properly operate the

central system;

(c)

has, to the satisfaction of the Authority, disclosed to

the Authority all financing and refinancing arrangements for the

purchase or acquisition by any other title of the central system,

and showed that the applicant has a valid ownership title to the

said central system; and

(d) has made all the arrangements necessary to ensure

that for the entire duration of the Class 4 Licence, all adequate

security, safety, connectivity, service level and other standards

as may be prescribed by the Authority will be complied with.

(2) In determining whether a Class 4 Licensee and any

associated persons are fit and proper, the provisions of regulation 8(2)

hereof shall apply mutatis mutandis.

In granting a Class 4 Licence, the Authority may subject

such Class 4 Licence to such other terms, conditions or requirements

as it may deem appropriate, and at any time following the grant of the

Class 4 Licence, the Authority may from time to time vary or revoke

any term, condition or requirement so imposed, or may impose new

terms, conditions or requirements.

A Class 4 Licensee shall

(a)

locate all equipment forming part of the central

system within a secure facility in conformity with regulation 24;

(b) at all times have access to all the equipment used as

part of central system, as well as to all software and data

installed on the said equipment;

(c)

install, set up and maintain the central system in

accordance with such requirements as may be prescribed by the

Authority from time to time;

(d)

cause the central system to reset upon its every

update;

(e)

keep the central system in proper functioning order

at all times and provide a service level undertaking which is

acceptable to the Authority;

(f)

not modify, tamper with, re-programme or otherwise

alter or allow or suffer any other person to modify, tamper with,

re-programme or otherwise alter the functioning of, the central

system;

(g) if and when required by the Authority, ensure that

the central system is connected to the central monitoring system

at all times; and

(h) provide to the Authority all reports, summaries,

statements, invoicing and such other information as may be

requested by the Authority.

(1) No Class 4 Licensee shall locate and maintain any Secure facilities.

equipment forming part of the central system in any premises unless

such premises satisfy the criteria mentioned in sub-regulation (2) and

are certified by the Authority as secure facilities.

(2) A secure facility shall

(a)

be bound by a protected perimeter wall;

(b) have a door access control system which records the

flow of persons in and out of the area and which stores such

date, time and the identification details of such persons for a

period of three months;

(c)

have closed circuit television cameras which are in

operation twenty-four hours a day, every day of the week, and

on which all equipment forming part of the central system is

clearly visible;

(d)

be manned at all times;

(e)

if required by the Authority, have network

monitoring equipment that can be accessed remotely by the

inspectors either through the operation of the central monitoring

system or by other means; and

(f)

comply with any other technical specifications,

standards and requirements as may be stipulated by the

Authority.

(3) Any footage recorded by the closed circuit television

cameras referred to in sub-regulation (2) shall be maintained for a

minimum period of sixty days and shall be accessible or provided to

inspectors if and when required.

(4) A certificate of approval in respect of a secure facility shall

remain valid until revoked by the Authority.

(5) The Authority shall at all times have the right to inspect the

secure facility in order to determine whether or not to issue or

whether or not to revoke the certificate of approval.

(6) Inspectors shall have the right to enter and observe

operations within the secure facility at any time.

(7) The issuance of the certificate of approval may be made

subject to conditions as may be deemed appropriate by the Authority.

PART VII

Approval of Relevant Gaming Devices

(1) No person shall carry out any of the activities listed

in regulation 3(1)(b) and (c) unless and until the relevant gaming

device in respect of which the aforesaid activities are carried out and,

or associated equipment, has been approved and registered by the

Authority following the submission by such person to the Authority

of an application for that purpose.

(2) Applications made under sub-regulation (1) shall be made

by a Class 2 Licensee or a Class 3 Licensee on such forms as may be

prescribed by the Authority from time to time and shall be

accompanied by the following

(a)

a certificate issued by a manufacturer and an

independent testing lab accredited within a Member State of the

European Union or a Member State of the European Economic

Area or any other jurisdiction or territory approved by the

Authority and recognised by the Authority as having the

required accreditation to issue such certificate (hereinafter

referred to as the "Testing Lab"), certifying compliance of the

relevant gaming device with Community law and standards as

may be applicable from time to time and in accordance with

these regulations;

(b)

a certificate issued by a Testing Lab certifying

compliance of the statistical randomness of the random number

or symbol generator related to the relevant gaming device with

Community law and standards as may be applicable from time

to time and in accordance with these regulations;

(c)

in the case where the certificate referred to in

paragraph (a) does not cover the games provided through the

relevant gaming device, a certificate issued by a Testing Lab

certifying compliance of the game provided through the relevant

gaming device with Community law and standards as applicable

from time to time and in accordance with these regulations;

(d) evidence that any game to be provided through a

relevant gaming device is an authorised game and that it

complies with the provisions of the Act and these regulations;

(e)

manuals, including software manuals, and any other

documents issued by the manufacturer of the relevant gaming

device containing

(i)

a full description of the relevant gaming

device;

(ii) the theme of the games that can be played

through the relevant gaming device;

(iii) instructions to be followed by users of the

relevant gaming device; and

(iv) all the rules pertaining to the game provided

through the relevant gaming device;

(f)

the details of the approved premises where such

relevant gaming device will be hosted;

(g) a statement of compliance with the terms of these

regulations signed by the key official and the Class 2 Licensee

or the Class 3 Licensee as the case may be;

(h) proof of the legal title of the applicant over the

relevant gaming device;

(i)

the serial number, type and specifications of the

relevant gaming device and, or associated equipment in

connection with which the activities listed in regulation 3(1)(b)

and (c) shall be carried out by the Class 2 Licensee or Class 3

Licensee, as the case may be;

(j)

if and when required by the Authority, a certificate

confirming the compatibility of the relevant gaming device with

the central monitoring system; and

(k) the non-refundable one-time approval fees for

registration of the relevant gaming device as set out in the Third

Schedule.

(3) Where an application submitted to the Authority pursuant

to sub-regulation (2) is approved by the Authority, the Authority

shall

(a)

register the relevant gaming device and the games

provided through such relevant gaming device in the name of

the applicant, and shall issue a certificate to that effect to the

applicant;

(b) issue a registration tag to be permanently affixed to

the relevant gaming device, which shall set out, inter alia

(i) the registration number allocated by the

Authority to the relevant gaming device;

(ii) the unique serial number of the manufacturer

of the relevant gaming device;

(iii) the name of the manufacturer of the relevant

gaming device;

(iv) the brand name of the relevant gaming

device; and

(v)

the model number of the relevant gaming

device.

(4) The registration tag referred to in sub-regulation (3)(b)

shall remain the property of the Authority and no person, other than

officials, employees or agents of the Authority, shall affix, remove,

erase or otherwise tamper with such registration tag.

(5) In the event that the registration tag mentioned in sub-

regulation (3)(b) is, for any reason, detached from the relevant

gaming device or defaced or otherwise damaged, it shall be the duty

of any person in whose name the relevant gaming device is registered

to forthwith

(a)

notify the Authority and

(b) disconnect and render inoperable the relevant

gaming device until an inspector or other official of the

Authority has checked, certified and re-affixed such registration

tag.

(6) The Authority shall maintain a register containing the

records of the relevant gaming devices registered in accordance with

this regulation.

(7) No game may be provided through a relevant gaming

device unless such game is an authorised game and the Authority has

been provided with the evidence necessary to show that such game is

an authorised game as required in terms of sub-regulation (2)(d). In

terms of article 5 of the Act, no other authorisation by the Authority

shall be required if the game complies with the provisions of the Act

and these regulations and is already authorised to be operated under

any law enacted by a Member State of the European Union or a

Member State of the European Economic Area or by any other

jurisdiction or territory approved by the Authority.

(8) A Class 3 Licensee may apply in writing to the Authority

on a form prescribed for that purpose, for the Authority to authorise a

particular game to be provided through a relevant gaming device.

(9) The application form referred to in sub-regulation (8) shall

be accompanied by the non-refundable, one-time application fee set

out in the Third Schedule, together with such other information or

documentation requested by the Authority, including inter alia, the

proposed stake or range of stakes for each game to be provided

through a relevant gaming device.

(10) Following the grant of the authorisation of a game in terms

of sub-regulation (8), the Class 3 Licensee who makes available for

use, hosts or operates the relevant gaming device through which such

game is provided shall, in respect of each relevant gaming device

through which such game is provided, pay to the Authority the annual

fee set out in the Third Schedule. Such annual fee shall be payable by

the Class 3 Licensee by not later than two weeks prior to the lapse of

every calendar year following the date of the authorisation referred to

in sub-regulation (8).

(1) A licensee in whose favour a relevant gaming device Changes to, or

is registered shall not effect, or suffer to be effected, any changes to transfers

relevant gaming

such relevant gaming device or the games provided through such devices.

relevant gaming device without obtaining prior approval of the

Authority, which approval shall be manifested by the issue of a

replacement registration tag to be affixed by an inspector over, or in

replacement of, the existing registration tag.

(2) It shall be the duty of the licensee in whose favour a

relevant gaming device is registered and of the administrators and key

officials thereof to notify the Authority forthwith, and in any case

within no later than three working days, of any change in the details

submitted to the Authority referred to in regulation 25(2)(a) to (i).

(3) No licensee shall transfer or otherwise dispose of a

relevant gaming device registered in his name until he obtains the

prior approval of the Authority by submitting an application form

prescribed by the Authority for that purpose.

(4) The Authority may request such information as it deems

necessary to be furnished to it in connection with the application

referred to in sub-regulation (3).

(5) No person may destroy or otherwise permanently

withdraw from operation a relevant gaming device which has been

approved and registered by the Authority in terms of this Part VII

until the Authority shall have removed the registration tag of the

relevant gaming device and struck off the relevant gaming device

from the register.

Any person carrying out an activity referred to in

regulation 3(1)(b) or (c) shall, at all times, ensure that any relevant

gaming device used or involved in carrying out any such activity

(a)

is made available for use, hosted or operated in

approved premises;

(b)

has a registration certificate attached thereon;

(c)

is functioning properly and, when that is not the

case, is immediately shut down until certified by an inspector as

having been repaired and made fit for operation;

(d) is not used to offer or play a game other than the

approved games;

(e)

is not modified, tampered with, re-programmed or

otherwise altered, save with the approval of the Authority;

(f)

in accordance with the way in which the machine is

constructed, adapted or regulated, be designed to pay out on

average a prize amounting to eighty five per centum (85%) or

more of the money or money’s worth inserted in the relevant

gaming device

Provided that a progressive or mystery jackpot shall not be

taken into account for the purpose of calculating such average

prize;

(g) as a result of, or in connection with, the use by any

person of a relevant gaming device, does not offer, for each

single game, a prize, reward or other benefit of a monetary

value or capable of being converted into a prize, reward or other

benefit of a monetary value, which is in excess of one thousand

euro (€1,000.00)

Provided that in the case of a progressive or mystery

jackpot, such maximum prize, reward or other benefit of a

monetary value shall not exceed two thousand euro (€2,000.00);

(h)

clearly indicates the limitation set out in paragraph

(g);

(i)

if and when required by the Authority, is at all times

connected to the central monitoring system, either directly or

through a central system which is itself connected to the central

monitoring system; and

(j)

restricts the maximum amount which can be

committed by a player for a single game provided through the

relevant gaming device (whether or not it is linked to other

relevant gaming devices) to a maximum of five euro (€5.00).

A relevant gaming device which has been approved and Further

registered by the Authority in terms of this Part VII shall provide the requirements

applicable to

relevant gaming

player with

devices.

(a)

the name of the game provided through the relevant

gaming device;

(b)

the cost of a credit;

(c)

the rules of the game provided through the relevant

gaming device;

(d)

warnings against excessive playing;

(e)

game information, relating to

(i) the odds of winning the game provided

through the relevant gaming device;

(ii) the average winnings paid out to players of

the game provided through the relevant gaming device

over a particular period of time or a particular number of

plays; and

(iii) the maximum and minimum player spend rate

for the game provided through the relevant gaming device;

and

(f)

player information, relating to

(i)

the duration of the player’s session of play;

(ii) the amount, expressed in euro and cents, that

the player has spent during the player’s session of play;

and

(iii) the player’s net wins or net losses during the

player’s session of play.

(1) The Authority may require a licensee, a specific

category of licensees or all licensees to upgrade, modify or replace a

relevant gaming device and, or associated equipment so as to conform

with any directive issued by the Authority from time to time. Without

prejudice to the generality of the foregoing the Authority may at any

time request a licensee, a specific category of licensees or all

licensees to carry out such upgrades, modifications or replacements

necessary to equip relevant gaming devices with a card reader system

capable of carrying out debit or credit operations on the monetary

contents recorded in a card and, or activating or deactivating the

relevant gaming device.

(2) In the event that the Authority imposes any requirement

referred to in sub-regulation (1) the relevant licensee or licensees

shall bear the cost of upgrading, modifying or replacing the relevant

gaming device or other associated equipment required to be so

upgraded, modified or replaced so as to conform with the directives

issued by the Authority.

PART VIII

Approval of Premises

It shall not be lawful for a Class 3 Licensee to make

available for use, host or operate any relevant gaming device in any

premises unless such premises are approved by the Authority in

accordance with this Part VIII and a certificate of approval in relation

to those premises is issued by the Authority in the name of the Class 3

Licensee.

(1) A Class 3 Licensee shall, prior to the Application for

commencement of any of the activities specified in the Class 3 approval

premises.

Licence, make an application in writing to the Authority for the

approval of the premises within which such activities are proposed to

take place.

(2) An application for the approval of premises under sub-

regulation (1) shall be made by the Class 3 Licensee on such form as

may be designated by the Authority from time to time and shall

include

(a)

the details of the Class 3 Licensee applying for

approval of the premises;

(b) a description of the nature, location and dimension

of the premises;

(c)

a plan to scale of the premises;

(d) diagrams that indicate clearly where the relevant

gaming devices shall be located within the premises;

(e)

the development permit issued by the Malta

Environment and Planning Authority in respect of the premises;

and

(f)

any other documents that may be specified by the

Authority in the application form mentioned in this sub-

regulation.

(3) The granting by the Authority of its approval of premises

under sub-regulation (1) shall, in all cases, be subject to the payment

of a non-refundable, one-time approval fee as set forth in the Third

Schedule, which fee shall be paid simultaneously with the filing of

the application for approval mentioned in sub-regulation (2).

The Authority shall only approve premises that satisfy the Eligibility for

approval.

following conditions

(a) the premises are operated, managed or

otherwise controlled by persons deemed by the Authority

to satisfy the requirements of the fit and proper test set out

in regulation 8;

(b) the premises have, as their sole and exclusive

purpose, the offering of games provided through relevant

gaming devices and, for the avoidance of doubt, the

making available for use, hosting or operation of

amusement machines shall, in no case, take place in such

premises;

(c) any and all access points to the premises are

located at a radial distance of not less than seventy-five

metres from the respective entry points at the perimeter of

such places, locations, premises or establishments as may

be determined by the Authority from time to time by

means of directives;

(d) the premises have adequate restricted access

controls in conformity with the provisions of regulation

33;

(e) the premises contain no more than one

relevant gaming device per two square meters of the area

in which the playing of games through relevant gaming

devices is designed to take place

Provided that in aggregate the premises shall not

contain more than ten relevant gaming devices and

provided further that in the case of relevant gaming

devices designed or adapted in such a way as to allow more

than one player to use such relevant gaming devices

simultaneously, for the purposes of the limitations set out

in this paragraph, the number of such relevant gaming

devices shall be multiplied by the aggregate number of

players who could use such relevant gaming devices

simultaneously;

(f) the premises indicate on all access points, by

means of an identification plate issued by the Authority,

that such premises are approved premises;

(g) the premises are equipped with closed circuit

television cameras which are in operation twenty-four

hours a day, every day of the week, and on which all

relevant gaming devices are clearly visible and footage

recorded by such closed circuit television cameras is stored

for a minimum of sixty days; and

(h) the premises comply with any other

specifications, rules or policies established by the

Authority in terms of article 78 of the Act.

(1) The restricted access controls mentioned in this

regulation shall be implemented at the access points of every

approved premises.

(2) A Class 3 Licensee shall, at each approved premises for

which he holds a certificate of approval issued in terms of regulation

30, keep a register of all persons entering and exiting such approved

premises, including approved employees. Such register shall include

the following information

(a)

the name and surname of the person entering the

approved premises;

(b) identification card or passport number as shown on

the identification card or passport presented by the entrant prior

to entry;

(c)

in the case of approved employees, the number of

the certificate of approval of the approved employee;

(d) the date and time of that person’s entry into the

approved premises; and

(e)

such other information as may be required in terms

of directives issued by the Authority from time to time.

(3) In order to discharge the obligations mentioned in sub-

regulation (2), the Class 3 Licensee shall ensure that the approved

premises include a reception area having at least one desk used solely

for the reception and entrance control of persons entering the

approved premises.

(4) The Class 3 Licensee shall ensure that a person shall not be

allowed to enter any approved premises and, or make use of the

relevant gaming devices if such person

(a)

is under the age of eighteen years;

(b) appears to be under the influence of alcohol or a

drug or is acting in a disorderly manner;

(c)

is requested by an approved employee not to enter

the approved premises on the ground that the person has

previously contravened any codes of conduct issued by the

Authority;

(d) upon a request to do so by an approved employee, he

fails to produce his valid identification card or passport;

(e)

has asked for an exclusion of his own admission, or

an approved employee is aware that an exclusion or restriction

is in force; or

(f)

is included in the list of excluded persons provided

by the Authority in terms of regulation 34.

(1) The Authority may from time to time issue codes of

conduct applicable to Class 3 Licensees in relation to restricted access

controls, including but not limited to the adoption of procedures for

the collection and verification of records of persons excluded of their

own accord or otherwise restricted from entering approved premises

or participating in games provided through a relevant gaming device.

(2) The Authority shall, from time to time, make available to

Class 3 Licensees a list of persons who are excluded, of their own

accord or otherwise, from entering approved premises or participating

in games provided through a relevant gaming device.

Where, before an application for the approval of premises

is determined, or while a certificate of approval of premises is in

force, a change occurs in a matter set out in, or in any documents

lodged in connection with, the application for such approval, the

Class 3 Licensee shall, not later than thirty days after the change has

occurred, give the Authority written particulars of that change.

(1) The Authority shall consider each application for the

approval of premises and shall -

(a)

approve the application; or

(b)

refuse to approve the application.

(2) Where the Authority approves an application for the

approval of premises, it may determine conditions to which the

approval shall be subject.

(3) The Authority may refuse to approve an application for the

approval of premises where -

(a)

the application does not comply with any one of the

requirements of regulation 32; or

(b) a requirement made under regulation 62 in relation

to the application is not complied with.

(4) The Authority shall refuse to approve premises if the Class

3 Licensee fails to satisfy the Authority that the proposed premises

are eligible for approval in accordance with regulation 32.

(5) Where the Authority refuses to approve an application for

the approval of premises, the Authority shall, within a reasonable

time, notify such refusal in writing to the Class 3 Licensee specifying

the reasons therefor.

(6) In considering an application for the approval of premises,

the Authority may inquire into such matters relating to the application

as it may deem necessary.

(1) Where the Authority approves an application for the Issue of

approval of premises, the Authority shall issue to the Class 3 Licensee certificate

approval of

a certificate of approval in a form determined by the Authority.

premises.

(2) The certificate of approval mentioned in sub-regulation (1)

shall set out

(a)

the name of the Class 3 Licensee who shall be

making available for use, hosting or operating relevant gaming

devices within such premises; and

(b) any conditions determined by the Authority under

regulation 36(2).

(3) The approval of premises under this regulation shall

remain subject to the power of the Authority to add, vary or revoke

any conditions relating to such approval during the currency of the

same, provided that notice in writing thereof within a reasonable time

is given to the Class 3 Licensee.

The certificate of approval of premises shall cease to have Duration of

approval.

effect

(a)

upon cancellation or suspension of the certificate of

approval in terms of regulation 40;

(b) upon surrender of the certificate of approval to the

Authority;

(c)

upon the expiration of one year from the issue of the

certificate of approval, whereupon it may be renewed by the

Authority in a form approved by the Authority for further

periods of one year each;

(d) upon failure to pay the annual fee mentioned in

regulation 39;

(e)

upon termination, cancellation, suspension or non-

renewal of the Class 3 Licence; and

(f)

if the premises cease to be in compliance with these

regulations, or any specifications, rules or policies established

by the Authority in terms of article 78 of the Act, or any

conditions determined by the Authority under regulation 36(2).

The Class 3 Licensee in whose name a certificate of

approval of premises has been issued by the Authority shall pay an

annual fee as set out in the Third Schedule. Such annual fee shall be

payable by the Class 3 Licensee by not later than two weeks prior to

the lapse of every calendar year following the date of issue of the

certificate of approval.

(1) The Authority may cancel or suspend a certificate of

approval where

(a)

the certificate of approval was issued at a time when

there were valid reasons for refusing its issue which were then

unknown to the Authority;

(b)

the holder of the certificate of approval is convicted

of

(i)

an offence against the Act;

(ii) an offence that is to be taken to be related to

an offence against the Act; or

(iii) an offence against any other law relating to

gaming or betting;

(c)

the holder of the certificate of approval is convicted

of a criminal offence punishable with imprisonment;

(d) the holder of the certificate of approval contravenes

a provision of the Act or of any regulations made thereunder;

(e)

the holder of the certificate of approval contravenes

a condition of the certificate of approval;

(f)

the holder of the certificate of approval provides

false or misleading information to the Authority;

(g) the holder of the certificate of approval is declared

insolvent or has been declared bankrupt; or

(h) the holder of the certificate of approval is, for any

other reason, a person not suitable to hold the certificate of

approval.

(2) The holder of the certificate of approval shall give notice

in writing to the Authority of the occurrence of any of the grounds for

the cancellation or suspension of the certificate of approval in terms

of sub-regulation (1) immediately upon becoming aware of such

occurrence. If the holder of the certificate of approval fails to give the

said notice, such failure shall constitute a ground of cancellation of

both the certificate of approval and the Class 3 Licence of the holder

of such certificate of approval.

(3) Where the Authority is satisfied that a ground for

cancellation or suspension of a certificate of approval has arisen

under sub-regulation (1), the Authority shall, by notice in writing,

request the holder of the certificate of approval to show cause, within

such period, being not less than twenty-one days after the issue of the

notice, as is specified in the notice, why the certificate of approval

should not be cancelled or suspended on such ground or grounds as

stated in the notice.

(4) The Authority shall have regard to any response made

under sub-regulation (3) and

(a)

where the matter is resolved to its satisfaction, shall

take no further action;

(b) where although the matter is not resolved to its

satisfaction, it considers that further action is not required, it

shall issue a written caution to the holder of the certificate of

approval; and

(c)

where the matter is not resolved to its satisfaction

and it is satisfied that further action is required, it may by notice

in writing served on the Class 3 Licensee

(i)

impose further conditions in the certificate of

approval;

(ii) suspend the certificate of approval for such

period as it thinks fit; or

(iii) cancel the certificate of approval.

(5) The Authority may at any time, by notice in writing given

to the Class 3 Licensee, bring to an end or reduce the period of the

suspension of the certificate of approval.

On receipt of notice of the suspension or cancellation of a Effect of

certificate of approval of premises, the Class 3 Licensee shall cease to cancellation

suspension.

make available for use, host or operate any relevant gaming devices

within the premises in respect of which such certificate of approval

had been issued.

PART IX

Approval of Employees

It shall not be lawful for a Class 3 Licensee to employ or

directly or indirectly engage any person, whether under a contract of

service or otherwise, to provide a service related to gaming in an

approved premises in relation to which the Class 3 Licensee holds a

certificate of approval in terms of regulation 30, unless such person

holds a certificate of approval issued by the Authority under

regulation 43, and in this Part the terms "employee", "employ" and

"employment" shall be construed accordingly

Provided that for the purposes of this Part the term "employee"

shall not include a Class 1 Licensee when carrying out the activities

listed in regulation 3(1)(a) or a Class 2 Licensee when carrying out

the activities listed in regulation 3(1)(b).

(1) Without prejudice to the provisions of regulation 48,

the Class 3 Licensee shall, prior to the commencement of

employment of an employee, make an application to the Authority in

writing for the approval of such person’s employment on such form as

shall be designated by the Authority from time to time.

(2) The application for the approval referred to in sub-

regulation (1) shall

(a)

set out the functions that the proposed employee is

to perform;

(b) be accompanied by any documents that the

application form may specify; and

(c)

be signed by the Class 3 Licensee and the proposed

employee.

(3) The granting of approval by the Authority shall, in all

cases, be subject to the payment of a non-refundable one-time

application fee as set forth in the Third Schedule and shall be paid

simultaneously with the filing of the application for approval

mentioned in sub-regulation (1).

A person is not eligible for approval by the Authority as an

employee if that person

(a)

is not a fit and proper person, and for this purpose

the provisions of regulation 8(2) shall apply mutatis mutandis;

(b)

is under the age of eighteen years; and

(c)

does not satisfy such other requirement as may be

established in terms of directives issued by the Authority from

time to time, including but not limited to the requirement to

follow and successfully complete courses on ethics and good

conduct relating to gaming.

(1) Where, before an application for the approval of an Change of

employee is determined, or while a certificate of approval of an particulars

out in

employee is in force, a change occurs in a matter set out in, or in any application.

documents lodged in connection with, the application for such

approval, the Class 3 Licensee shall, not later than thirty days after

the change has occurred, provide the Authority with written

particulars of that change.

(2) Where as a result of a change referred to in sub-regulation

(1), irrespective of whether such change has been notified to the

Authority, a situation is brought about that, had it existed at the time

of the application for approval of an employee under these

regulations, it would have precluded the grant of the approval, the

Authority shall by notice inform the approved employee accordingly,

and if such situation is not remedied to the satisfaction of the

Authority within one month from the notice to that effect, the

Authority may cancel or suspend the certificate of approval without

complying with the provisions of regulation 51.

(1) The Authority shall consider each application for the Approval of an

application.

approval of an employee and shall -

(a)

approve the application; or

(b) after amending, with the consent in writing of the

Class 3 Licensee and the proposed employee, the functions of

the proposed employee set out in the application, approve the

application as so amended; or

(c)

refuse to approve the application.

(2) Where the Authority approves an application for the

approval of an employee, it may determine conditions to which the

approval shall be subject.

(3) The Authority may refuse to approve an application for the

approval of an employee where

(a)

the application does not comply with any one of the

requirements of regulation 43; or

(b) a requirement made under regulation 62 in relation

to the application is not complied with.

(4) The Authority shall refuse to approve a proposed employee

if the Authority is not satisfied that the proposed employee is eligible

for approval in accordance with regulation 44.

(5) Where the Authority refuses to approve an application for

the approval of an employee, the Authority shall, within a reasonable

time, notify such refusal in writing to the Class 3 Licensee specifying

the reasons therefor.

(6) In considering an application for the approval of an

employee, the Authority may inquire into such matters relating to the

application as it may deem necessary.

(1) Where the Authority approves an application for the

approval of an employee, the Authority shall issue to the proposed

employee a certificate of approval in a form approved by the

Authority.

(2) A certificate of approval of an employee shall set out

(a)

the functions that the approved employee may

perform in relation to gaming;

(b) the name of the Class 3 Licensee for whom the

approved employee is approved to provide services as set out in

regulation 42; and

(c)

any conditions determined by the Authority under

regulation 46(2).

(3) The approval of an employee under this regulation shall

remain subject to the power of the Authority to add, vary or revoke

any conditions relating to such approval during the currency of the

same, provided that notice in writing thereof within a reasonable time

is given to the approved employee and to the Class 3 Licensee.

(1) Where a Class 3 Licensee has submitted an

application for the approval of an employee, the Authority may,

pending the issue of a certificate of approval, issue a provisional

certificate of approval of an employee to the proposed employee in a

form approved by the Authority and under such terms and conditions

as the Authority may deem necessary.

(2) A provisional certificate of approval of an employee shall

cease to have effect in any one of the following circumstances,

whichever is the earlier

(a)

upon cancellation by the Authority by notice in

writing given to the holder of the provisional certificate of

approval and to the Class 3 Licensee;

(b) upon issue of a certificate of approval of an

employee to the holder of the provisional certificate of

approval;

(c)

upon surrender of the provisional certificate of

approval to the Authority;

(d) upon the expiration of three months from the issue

of the provisional certificate of approval;

(e)

upon the termination, suspension, cancellation or

non-renewal of the Class 3 Licence held by the Class 3 Licensee

for whom the provisionally approved employee is provisionally

approved to provide services as set out in regulation 42(1);

(f)

upon termination of employment with the Class 3

Licensee indicated in the provisional certificate of approval; or

(g) upon the death of the holder of the provisional

certificate of approval.

A certificate of approval of an employee, other than a Duration of

provisional certificate of approval as mentioned in regulation 48, certificate

approval.

shall cease to have effect

(a)

upon cancellation or suspension of the certificate of

approval;

(b) upon surrender of the certificate of approval to the

Authority;

(c)

upon the expiration of one year from the issue of the

certificate of approval, whereupon it may be renewed by the

Authority in a form approved by the Authority for further

periods of one year each;

(d) upon the termination, suspension, cancellation or

non-renewal of the Class 3 Licence held by the Class 3 Licensee

for whom the approved employee is approved to provide

services as set out in regulation 42;

(e)

upon termination of the employment with the Class

3 Licensee indicated in the certificate of approval; or

(f)

upon the death of the holder of the certificate of

(1) The functions that an approved employee may

perform may not be varied unless the Class 3 Licensee indicated in

the certificate of approval of the employee applies to the Authority in

a form approved by the Authority for a variation of the functions that

the approved employee may perform, and the Authority approves

such application.

(2) Where the Authority proposes to approve an application

under sub-regulation (1), the Authority

(a)

shall notify the Class 3 Licensee and the approved

employee by notice in writing of the variation that the Authority

proposes to make in relation to the certificate of approval of the

employee;

(b) shall request the approved employee to forward such

certificate of approval to the Authority for alteration; and

(c)

on receipt of such certificate of approval, shall alter

it in accordance with that proposal.

(1) A ground for cancellation or suspension of a

certificate of approval of an employee arises where

(a)

the certificate of approval was issued at a time when

there were valid reasons for refusing its issue which were then

unknown to the Authority;

(b)

the holder of the certificate of approval is convicted

(i)

an offence against the Act;

(ii) an offence that is related to an offence against

the Act; or

(iii) an offence against any other law relating to

gaming or betting;

(c)

the holder of the certificate of approval is convicted

of a criminal offence punishable with imprisonment;

(d)

the holder of the certificate of approval contravenes

a provision of the Act or of any regulations made thereunder;

(e)

the holder of the certificate of approval contravenes

a condition of such certificate of approval;

(f)

the holder of the certificate of approval provides to

the Authority false or misleading information;

(g) the holder of the certificate of approval is declared

bankrupt, or applies to take the benefit of any law for the relief

of bankrupt or insolvent debtors;

(h) the holder of the certificate of approval is, for any

other reason, a person not suitable to hold such certificate of

approval; or

(i)

the holder of the certificate of approval no longer

fulfils the eligibility criteria mentioned in regulation 44

Provided that the Authority may dispense with the condition

under paragraphs (c) and (g).

(2) The Class 3 Licensee indicated in the certificate of

approval of an employee shall give notice in writing to the Authority

of the occurrence of any of the grounds for the cancellation or

suspension of the certificate of approval in terms of sub-regulation (1)

immediately upon the Class 3 Licensee becoming aware of such

occurrence. If the Class 3 Licensee fails to give the said notice, such

failure shall constitute a ground of cancellation of both such

certificate of approval and the Class 3 Licence held by the Class 3

Licensee.

(3) Where the Authority is satisfied that a ground for

cancellation or suspension of a certificate of approval of an employee

has arisen under sub-regulation (1), the Authority shall, by notice in

writing, request the holder of such certificate of approval to show

cause, within such period, being not less than twenty-one days after

the issue of the notice, as is specified in the notice, why the certificate

of approval should not be cancelled or suspended on such ground or

grounds as stated in the notice.

(4) The Authority shall have regard to any response made

under sub-regulation (3) and

(a)

where the matter is resolved to its satisfaction, shall

take no further action;

(b)

where although the matter is not resolved to its

satisfaction, it considers that further action is not required, it

shall issue a written caution to the holder of the certificate of

approval; and

(c)

where the matter is not resolved to its satisfaction

and it is satisfied that further action is required, it may by notice

in writing served on the Class 3 Licensee and the holder of the

certificate of approval

(i) vary the functions that the holder of the

certificate of approval may perform;

(ii) impose further conditions in the certificate of

approval;

(iii) suspend the certificate of approval for such

period as it thinks fit; or

(iv) cancel the certificate of approval.

(5) Where a variation of functions or a condition imposed by

the Authority under sub-regulation (4)(c) is not complied with within

the time specified in the notice, the Authority shall cancel or suspend

the certificate of approval.

(6) The Authority may at any time by notice in writing given

to the Class 3 Licensee and to a person who was the holder of a

certificate of approval at the time of the suspension of such certificate

of approval, bring to an end or reduce the period of the suspension of

such certificate of approval.

The Class 3 Licensee shall, on receipt of notice of the

suspension or cancellation of a certificate of approval of an employee

of such Class 3 Licensee, cease to permit the person who was the

holder of such certificate of approval to perform functions of the kind

specified in such certificate of approval.

PART X

General

The granting of any licence, certificate of approval or other

authorisation by the Authority in terms of these regulations (in this

Part collectively referred to as an "Authorisation") is a revocable

privilege and no holder thereof shall be deemed to have acquired any

vested rights therein or thereunder.

(1) An Authorisation may not be directly or indirectly Assignment or

assigned or transferred in any way whatsoever to any other person transfer

prohibited.

without the prior written approval of the Authority.

(2) Any such assignment or transfer to any other person

without the Authority’s consent shall be considered null and void,

shall constitute sufficient grounds for the Authority to suspend or

cancel that Authorisation and shall constitute an offence against these

regulations.

(3) In the event that a holder of an Authorisation wishes to

surrender his Authorisation he shall notify the Authority in writing

and the Authority shall proceed to cancel the Authorisation

accordingly. A cancellation of an Authorisation shall not affect any

liability of the holder of the Authorisation for anything done or

omitted to be done before the date of cancellation.

(1) It shall be the duty of a holder of an Authorisation, Notification of

the administrators and the key official to notify the Authority of any material

changes.

material change in the holder’s circumstances and of any other

circumstance that may be reasonably expected to affect the abilities of

the holder of the Authorisation to comply with the Act, these

regulations and the Authorisation.

(2) A change in any of the information provided in the

application for an Authorisation in terms of these regulations and, or

in any Authorisation condition shall be deemed to be a material

change in the circumstances of the holder of the Authorisation.

(3) Where as a result of a change referred to in sub-regulation

(1), whether such change has been notified to the Authority or

otherwise, a situation is brought about that, had it existed at the time

of the application for an Authorisation under these regulations, it

would have precluded the grant of the Authorisation, the Authority

shall by notice inform the holder of the Authorisation accordingly,

and if such situation is not remedied to the satisfaction of the

Authority within one month from the date of issue of a notice to that

effect, the Authority may revoke or suspend the Authorisation

without complying with the provisions of regulation 59

Provided that the Authority shall not issue a notice as aforesaid

any later than three months after becoming aware of the change

referred to in sub-regulation (1).

(1) Every holder of an Authorisation, associated person Procedures,

and approved employee shall, at all times, adhere to the provisions of internal

controls,

the Act, these regulations, every Authority’s directive applicable to approval

requirements.

them and all conditions of the Authorisation.

(2) Every holder of an Authorisation shall carry out the

activities specified in the Authorisation issued thereto in accordance

with the procedures, codes of conduct and internal controls which

may be prescribed by the Authority from time to time, and all such

procedures, codes of conduct and internal controls shall be deemed to

be a condition of the Authorisation, whether or not expressly included

therein.

(3) Every licensee shall maintain all accounting and technical

records, and shall forward same to the Authority, in such a form,

detail and with such frequency as may be prescribed by the Authority

in codes of conduct which may be prescribed for this purpose by the

Authority from time to time.

(4) Every holder of an Authorisation shall promptly report to

the Authority any fact or circumstance relating to the operation of

relevant gaming devices that he reasonably suspects of constituting

an offence under these regulations or the Act.

(5) The granting by the Authority of an Authorisation under

these regulations to any person shall not relieve such person from

obtaining any other permit, approval or licence required by or under

any other law or regulations in force from time to time.

The Authority may issue codes of conduct regulating the

conduct and operations of the holders of an Authorisation.

In the event of reasonable doubt as to whether an

Authorisation is required in terms of these regulations, the matter

shall be conclusively determined by the Authority.

(1) The Authority may revoke or suspend a licence

granted in terms of these regulations on any of the following grounds

(a)

the licensee or any associated person, as the case

may be, is convicted of an offence against the Act, or of theft,

receiving stolen property, fraud or any crime affecting public

trust;

(b) the licensee contravenes any provision of the Act or

these regulations, or is in breach of any condition of the licence

or of any directive issued by the Authority in terms of the Act or

regulations;

(ë)

the licensee knowingly or negligently supplies to the

Authority information that is false or misleading;

(d)

the licensee fails to fulfil his financial commitments

to the Authority when these become due and payable, or

otherwise fails to pay any fees or taxes due under the Act or

these regulations;

(e)

the licensee is in the process of being wound up or

otherwise dissolved;

(f)

the licensee or an associated person carried out an

act requiring approval of the Authority without having obtained

such approval or in a manner which is not in accordance with

such approval;

(g) the Authority is reasonably satisfied that the licensee

is not, or has ceased to be, a person suitable to hold the licence.

(2) Where a ground for revocation, suspension or non-renewal

of a licence arises under these regulations, the Authority shall, by

means of a reasoned notice in writing, request the licensee to show

cause, within such period being not less than twenty-one days after

the issue of the notice as specified in the same notice, why the licence

should not be revoked, suspended or renewed on such ground as is

stated in the notice

Provided that where the Authority deems that it is in the interest

of the public to suspend the operations of the licensee with immediate

effect, the Authority shall have the right to impose such condition

with immediate effect as a precautionary measure, prior to the lapse

of the aforementioned twenty-one day period.

(3) The Authority shall have regard to any response made

under sub-regulation (2) in such manner that

(a)

where the matter is resolved to its satisfaction, it

shall take no further action and shall inform the licensee in

writing accordingly;

(b) where, although the matter is not resolved to its

satisfaction, it considers that further action is not required, it

shall issue a written caution to the licensee; or

(c)

where the matter is not resolved to its satisfaction

and it is satisfied that further action is required, it may by notice

in writing

(i) give such direction to the licensee as it

considers appropriate;

(ii) suspend the licence for such period as it

thinks fit; or

(iii) revoke or not renew the licence.

(4) Where a direction given by the Authority under sub-

regulation (3)(c) is not complied with within the time specified in the

notice, the Authority may suspend, revoke or not renew the licence.

(5) The Authority shall, in the case of any action taken in

terms of sub-regulation (3)(b) and (c), provide the licensee with

reasons for its decision.

(6) The suspension, revocation or non-renewal of a licence

shall not affect any liability of the licensee for anything done or

omitted to be done before the date of suspension or expiration.

(7) The liability of the licensee to pay any fee shall continue

during any period in which the licence is suspended.

(1) A licensee shall appoint at least one individual,

residing in a Member State of the European Union or a Member State

of the European Economic Area or any other jurisdiction or territory

approved by the Authority, as key official, and until such appointment

is approved by the Authority, the licensee shall not be allowed to

carry out any activity in respect of which the licence was granted.

(2) The key official shall be personally responsible to

supervise the carrying out of the activities specified in the licence and

ensure that the said activities are in compliance with the applicable

laws and regulations, conditions of the licence and any directives

issued by the Authority.

(3) The key official shall

(a)

have sufficient and adequate resources for the

proper discharge of his duties as key official;

(b) be an administrator of the licensee who the

Authority reasonably believes to have a significant influence in

the management of the operations and activities of the licensee;

and

(c)

at all times be readily available to respond to

requests made by the Authority in connection with the activities

and operations of the licensee.

(4) An application for the approval of a key official shall be

made to the Authority in writing, on such form as may be designated

for such purpose by the Authority from time to time.

(5) The Authority shall not approve the appointment of a key

official unless it is satisfied that such individual is fit and proper to

fulfil his obligations and discharge his duties taking into account,

inter alia, the matters referred to in sub-regulation (3). The Authority

shall undertake any investigations which the Authority considers

necessary to determine whether the key official is eligible and

suitable to act as key official.

(6) In undertaking its investigations in terms of sub-regulation

(5), the Authority may

(a)

require the key official and the licensee in respect of

which the key official has been appointed to provide further

information relating to the application;

(b) require the key official to undergo an independent

investigation into his financial position and credit history; and

(c)

refer to the Commissioner of Police a copy of the

application and any further information provided by the key

official or the licensee.

(7) The Authority shall cancel the key official approval if such

key official fails to satisfy the requirements mentioned in sub-

regulation (3).

(8) The Authority may cancel the approval of a key official if

such key official

(a)

is convicted in any country or territory of an offence

punishable with imprisonment;

(b) is found guilty of an offence against the Act or

regulations made thereunder; or

(c)

fails to satisfy any condition required to be fulfilled

by a key official in terms of these regulations.

(9) A key official approval shall no longer remain valid if

(a)

it is cancelled by the Authority;

(b) the key official tenders his resignation and notifies

the Authority thereof;

(c)

the appointment of the key official is terminated by

the licensee appointing him; or

(d) the key official notifies the Authority thereof

together with details of the reasons for his removal.

(1) Notwithstanding anything contained in any other

law, the approval in writing of the Authority shall be required before

any person may lawfully

(a)

acquire a qualifying holding in a licensee;

(b) increase an existing holding which is not a

qualifying holding so as to cause it to become a qualifying

holding in a licensee;

(c)

increase an existing qualifying holding in a licensee

to cause it to equal or exceed thirty per centum or fifty per

centum or to cause the licensee to become that person’s

subsidiary;

(d) reduce an existing qualifying holding in a licensee

so as to cause it to fall below fifty per centum or thirty per

centum, or to cause the licensee to cease to be that person’s

subsidiary;

(e)

reduce an existing qualifying holding in a licensee

so as to cause it to cease to be a qualifying holding; or

(f)

divest himself of a qualifying holding in a licensee.

(2) It shall be the duty of the licensee and the key official to

notify the Authority forthwith upon, and in any case not later than

seven days after, becoming aware that any person intends to take any

of the actions listed in sub-regulation (1).

(3) The Authority may request such information as it deems

necessary to be furnished to it in connection with the notification

referred to in sub-regulation (2).

(4) Within three months of receipt of the notification referred

to in sub-regulation (2) or of the information referred to in sub-

regulation (3), whichever is later, the Authority shall

(a)

grant unconditional consent to the taking of the

action;

(b) grant consent to the taking of the action subject to

such conditions as the Authority may deem appropriate; or

(c)

refuse consent to the taking of the action

Provided that where the Authority fails for any reason to issue

such a notice within the aforesaid period, this fact shall be construed

as if the consent has been granted in terms of paragraph (a).

The Authority may, by notice in writing, require a holder Requirement for

further

of an Authorisation

information.

(a)

to provide, in accordance with the directions set out

in the notice, such information specified therein;

(b) to produce, in accordance with directions set out in

the notice, such records specified in the notice;

(c)

to permit examination of records, the taking of

extracts from records and the making of copies of records; or

(d) to authorise a person specified in the notice to

comply with a requirement of a kind referred to in paragraphs

(a), (b) or (c).

It shall be unlawful for an employee, as defined in Part IX, Prohibition on

or for an administrator of a Class 3 Licensee, to participate in the employees

administrators

playing of a game provided though a relevant gaming device from

game through a

registered in the name of the said Class 3 Licensee.

relevant gaming

device.

PART XI

Provision of Money for Gaming

It shall not be lawful for a licensee or any person acting on Provision of

behalf of the licensee or under any arrangement with the licensee, to money

of relevant

make any loan to, or otherwise provide to or allow any financial gaming

prohibited.

credit to, or release or discharge on another person’s behalf the whole

or part of any debt -

(a)

to enable a person to play games provided through

relevant gaming devices, and, or

(b) in respect of any losses incurred by any person in

playing games provided through relevant gaming devices.

PART XII

Advertising

No advertising of any of the activities listed in regulation Limits of

3(1) shall be allowed where such advertising is in contravention of advertising.

the code of conduct on advertising, promotions and inducements

issued by the Authority. Compliance with such code shall be deemed

to be a condition of a licence.

PART XIII

Central Monitoring System

(1) The Authority may, at any time, require a licensee, a

specific category of licensees or all licensees to connect the relevant

gaming devices and, or the central systems registered in their name to

a central monitoring system operated by the Authority, and to

maintain such connection at all times.

(2) In the event that the Authority imposes the requirement

referred to in sub-regulation (1) the Authority may, at any time,

require a licensee, a specific category of licensees or all licensees to

upgrade, modify or replace relevant gaming devices and, or

associated equipment to ensure their compatibility with the central

monitoring system operated by the Authority in accordance with such

technical specifications as may be specified in directives issued by

the Authority from time to time.

(3) In the event that the Authority imposes the requirements

referred to in this regulation, the licensee shall bear the costs of

upgrading modifying or replacing the relevant gaming devices and, or

associated equipment.

(1)

The Authority may use a central monitoring system

for

(a)

monitoring and receiving information about, inter

alia

(i) the funds used to play a game provided

through a relevant gaming device and the destination of

those funds;

(ii) the gross proceeds generated from each

relevant gaming device;

(iii) the number and location of relevant gaming

devices connected to the central monitoring system;

(iv) faults with relevant gaming devices;

(v)

tampering with relevant gaming devices; and

(vi) suspected contraventions of the Act or these

regulations;

(b) controlling relevant gaming devices directly or

through a central system to which the relevant gaming devices

may be connected;

(c)

disabling or enabling relevant gaming devices

directly or through a central system to which the relevant

gaming devices may be connected;

(d) such other purposes as may be specified in

directives issued by the Authority from time to time.

(2) Any statistical information that is collected by the

Authority in terms of sub-regulation (1)(a) may be made available on

the Authority’s website, or in another electronic form that is easily

accessible to the public.

(3) If a fault in the central monitoring system or in the

telecommunications system used to operate the central monitoring

system causes relevant gaming devices or central systems not to

operate, the Authority shall not be liable for any compensation to any

person for loss or damage caused by the failure to operate of the

relevant gaming devices and, or central systems.

PART XIV

Offences and Penalties

(1) Any person who knowingly contravenes or fails to Offences

comply with any of the provisions of these regulations shall be guilty

of an offence and shall on conviction, unless the offence is subject to

a greater punishment under a provision of the Act or of any other law,

be liable to a fine (multa) of not less than three thousand euro

(€3,000) but not exceeding two hundred and thirty-five thousand euro

(€235,000) in respect of every contravention of, or failure to comply

with, the provisions of these regulations, and, or the seizure, removal,

confiscation, destruction or disabling of relevant gaming devices,

central system, associated equipment or any equipment or software

related or connected thereto.

(2) In addition and without prejudice to any liability of an

employee or other person, where any thing is done or omitted to be

done by a body of persons, the provisions of this Part shall apply as if

such thing were done or omitted to be done by every administrator or

key official of that body of persons

Provided that a key official or an administrator shall not be

guilty of an offence in virtue of this sub-regulation if he proves that

he was unaware and could not with reasonable diligence have been

aware of such act or omission and that he did everything within his

power to prevent that act or omission.

(3) Where anything is done or omitted to be done by an

employee in the course of his employment, or by any person acting on

behalf of a licensee, whether such other person is an employee or not,

the provisions of this Part shall apply as if such thing were done or

omitted to be done by both

(a)

the said employee or other person; and

(b)

the employer or licensee

Provided that such an employer or licensee shall not be guilty of

an offence by virtue of this sub-regulation if he proves that he was

unaware and could not with reasonable diligence have been aware of

such an act or omission and that he did everything within his power to

prevent that act or omission.

The provisions of article 68 of the Act shall apply mutatis

mutandis and any reference contained therein to a licensee or holder

of a permit issued in terms of article 36 of the Act shall be deemed to

be a reference to a "licensee" as defined in these regulations.

(1) Without prejudice to anything contained in articles

18, 19 and 20 of the Act, an inspector shall for the purpose of

ascertaining that these regulations and that all the conditions of a

licence, certificate of approval or other authorisation issued by the

Authority under these regulations are being complied with, and that

the full amount of fees, taxes or any other sums payable under the

Act or under these regulations are being paid, also have the following

powers

(a)

to inspect and examine a relevant gaming device or

a component of a relevant gaming device, associated equipment

and, or a central system;

(b) to play a game or games on a relevant gaming

device for the purpose of confirming that the relevant gaming

device is in compliance with the provisions of these regulations;

(c)

to remove a relevant gaming device or part thereof,

any associated equipment, a central system or components

thereof to another place or premises approved and designated by

the Authority, for the purpose of an inspection or examination to

ensure that it complies with the provisions of these regulations

and the Act;

(d) to inspect any premises, whether approved in terms

of these regulations or not, where relevant gaming devices are

kept, stored, hosted, operated, made available for use or

displayed and, or offered to the public;

(e)

to inspect any premises, whether approved in terms

of these regulations or not, where a central system is kept,

stored, hosted, operated, made available for use or displayed;

(f)

to request information or the production for

inspection of any document or any other thing for the purposes

of an inspection;

(g) to remove any document or any other thing

produced as a result of a request under paragraph (f) or

discovered during an inspection conducted for the purpose of

examining the document or other thing or making copies or

taking extracts.

(2) An inspector removing a relevant gaming device, a

component of a relevant gaming device, associated equipment, a

central system, document or other thing from an approved premises

or other place under sub-regulation (1) shall first provide a receipt for

it to the person who owns or is in charge of the premises or place and,

subject to sub-regulation (3), shall promptly return the relevant

gaming device, component of the relevant gaming device, associated

equipment, central system, document or other thing to the premises or

other place after completion of the inspection, examination, making

of copies or taking of extracts, as the case may be.

(3) An inspector may detain for the purposes of evidence any

relevant gaming device, associated equipment, central system or

component thereof, document or other thing that the inspector

discovers while acting under this regulation and believes, on

reasonable and probable grounds, may afford evidence of a violation

of or a non-compliance with anything contained in these regulations

Provided that copies of, or extracts from, documents or other

things removed from an approved premises or other place under this

regulation and certified by an official of the Authority making the

copies or taking the extracts as being true copies of, or extracts from,

the originals are admissible in evidence to the same extent as, and

have the same probatory value as, the documents or things of which

they are copies or from which they are extracts.

(4) An inspector may, without prior notice, disable or seal a

relevant gaming device, associated equipment and, or a central

system, if the inspector has reasonable grounds to believe that the

relevant gaming device, the associated equipment or the central

system is faulty or has been modified, tampered with, re-programmed

or otherwise altered without the approval of the Authority and, or

does not comply with these regulations and, or the minimum

standards established by the Authority from time to time

Provided that the Authority shall enable or unseal the relevant

gaming device, the associated equipment or the central system if the

Authority has reasonable grounds to believe that the reasons for its

disablement or sealing have been remedied to the satisfaction of the

Authority.

(5) A disablement or subsequent enablement of a relevant

gaming device or central system may be effected through the central

monitoring system or through any other means.

(1) The person who owns or is in charge of any place or

premises entered into by an inspector, and any employee or agent of

such person, shall give all necessary assistance to the inspector to

enable the inspector to exercise the powers given under articles 18

and 19 of the Act and these regulations, and shall furnish the

inspector with such relevant gaming device, component of a relevant

gaming device, central system, associated equipment, information or

other thing as the inspector may reasonably request.

(2) It shall be unlawful for any person to hinder, obstruct or

otherwise interfere with, or knowingly make a false or misleading

statement either orally or in writing to, or provide or produce a false

document or other thing to, an inspector who is carrying out his or her

duties and functions under this regulation.

(1) Notwithstanding any provision in these regulations,

and without prejudice to the provisions of the Gaming Act or a casino

licence issued in terms thereof, these regulations shall not apply to a

person that makes available for use, hosts or operates any relevant

gaming device in a casino complex in which the business of casino

gaming is allowed to be operated in terms of a casino licence granted

to that person under the Gaming Act.

(2) For the purpose of these regulations and article 7(1) of the

Act, a personal computer or a domestic computer shall not, by reason

only of the fact that it can be used to participate in any form of

gaming by means of distance communications, be deemed to be a

relevant gaming device

Provided that in case of doubt as to whether a device is a

personal computer, a domestic computer or a relevant gaming device,

the Authority shall have the power to conclusively determine the

matter after taking into account

(a)

the location of the device;

(b)

the purposes for which the device is being used;

(c)

the software installed on the device; and

(d) any other matter which the Authority considers

relevant in the circumstances.